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Most & Least Taxing States 2013

By Rebecca Helmes of Bloomberg BNA - 2013-04-19T17:41:14Z

Photograph by Paul Sakuma/AP Photo

Company Symbol % Change
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Income tax: 3.4% (flat tax)
Sales tax: 7%
Property tax per capita: $1,182
Inheritance tax: Repealed for deaths after Dec. 31, 2021*

Indiana has given Amazon a pass on collecting sales tax from residents -- it has benefited from the job growth and property tax contributions that stem from having three Amazon distribution centers. That pass is slated to end in 2014, when the state will begin collecting 7 percent sales tax. Starting in 2013, the state plans to phase out its inheritance tax until it is eliminated entirely in 2021. Indiana residents will also pay less in state income taxes this year when they receive a $111 credit as their part of Indiana’s 2012 budget surplus.

*The inheritance tax rate is often based on the degree to which the beneficiary is related to the deceased. For those dying in 2013, spouse transfer is tax-free; lineal-ancestor transfer, lineal-descendant transfer, step-child transfer and transfers to lineal descendant’s or step-child’s spouse, widow or widower taxed at 1 percent to 10 percent; sibling or descendant-of-sibling transfer taxed at 7 percent to 15 percent; all other transfers taxed at 10 percent to 20 percent.